If the amount of money demanded by households and firms is less than the amount in circulation as determined by the Bank of England

Name: If the amount of money demanded by households and firms is less than the amount in circulation as determined by the Bank of England
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When the demand for money is less than the supply, it typically leads to lower interest rates because banks and other financial institutions have more funds available to lend, which they do at lower rates to attract borrowers.

If the Amount of Money Demanded by Households and Firms